GSK to Shut Down 75-Year-Old Cephalosporin Manufacturing Plant Following Sandoz Deal

In 2021, Sandoz, a Novartis company（Sandoz）A $500 million deal was reached with GlaxoSmithKline (GSK) for its cephalosporin business, covering the ownership of three well-established brands (Zinnat, Zinacef, and Fortum) in over 100 markets worldwide. The agreement excludes certain brand rights previously divested by GSK in the United States, Australia, and Germany, as well as rights in India, Pakistan, Egypt, Japan (for certain brands), and China (where GSK will retain these rights).

And now, according to the BBC report, as for Sandoz（Sandoz）GSK to Close 75-Year-Old UK Plant as Antibiotic Manufacturing Contract Ends

The previous transaction was driven by the COVID-19 pandemic, which not only reignited interest in infectious diseases but also reminded the world of long-standing issues in the antibiotic supply chain and the lack of development in this field.Sandoz（Sandoz）Hopes to strengthen its antibiotic portfolio. This also aligns with GSK CEO Emma Walmsley's strategy of focusing on innovative drugs and vaccines while divesting other assets.Now, oncology has once again become the focus of GSK's attention. After all, compared with anti-cancer drugs, antibiotics are a less profitable market. Pharmaceutical manufacturers of all sizes have found it difficult to turn their drugs into major sources of revenue.

A spokesperson for GSK wrote in an email: "In 2021, we said that in the absence of alternatives,Once our contract manufacturing agreement with Sandoz ends in 2025, we will cease our cephalosporin production operations.——Including our factory in Ulverston."

Of course, GSK has not completely abandoned its antibiotics business line, as it still retains some antibiotic assets, including the popular brand Augmentin and the experimental drug Gepotidacin.

At the same time, some large pharmaceutical companies are still pushing forward with the development of antibiotics. In addition to GSK and its Gepotidacin, Merck also received FDA approval for Recarbrio in 2020. Recarbrio is a triple-combination drug used for urinary tract and abdominal infections. Johnson & Johnson has also entered into an $818 million collaboration with Locus Biosciences, a company dedicated to developing phage therapies.

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